Government & Politics

Under Jindal’s “revenue neutral” plan, state sales taxes would increase by nearly half, from 4 percent to 5.88 percent, to offset a $3 billion repeal of state corporate and income taxes. If implemented, Louisiana would have the highest average state and local sales tax rate in the country. Taxes on cigarettes would go up by more than a dollar per pack. Many tax exemptions, including some that effect the oil and gas industry, would be eliminated, and the sales tax “base” would be selectively broadened to cover certain services: 

Doctors, lawyers and financial advisers would not have to face the new state sales tax of 5.88 cents for their services. Hairdressers, cable TV companies, tanning salons and pet groomers would.

Bridges also wrote a play-by-play of the administration’s presentation.

“When is the last time that Governor Jindal and his administration has gotten budget numbers right? I don’t know,” [Rep. John Bel Edwards] said. …

 The Tax Foundation praised Jindal’s proposal Thursday, noting that it would simplify the state’s tax system and could move Louisiana from 32nd to fourth on the organization’s “Business Climate Index.”

Mark Moseley

Mark Moseley blogs at Your Right Hand Thief. Until mid 2014, Mark Moseley was The Lens' opinion writer, engagement specialist and coordinator for the Charter Schools Reporting Corps. After Katrina and...